Obama moves toward wireless auction

The Obama administration gave a major boost to the wireless industry Monday by announcing plans to make available for commercial use a huge swath of spectrum.

Obama signed a presidential memorandum directing the federal government and private companies to identify unused airwaves that could be auctioned off, or at least shared, to expand mobile broadband for consumers over the next decade. The goal is to free up some 500 megahertz — almost double the current amount of spectrum available for commercial use — by reallocating airwaves now operated by companies, broadcasters and government agencies.

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The memorandum advances the Federal Communications Commission’s recommendation in its National Broadband Plan earlier this year. While the White House’s support was expected, it gives momentum to the plan, which has been bogged down by the debate over rejiggering the regulatory framework for broadband.

The broadband plan’s recommendation would free up 280 megahertz of commercial spectrum, which is in the FCC’s domain, as well as 220 megahertz of spectrum licenses held by agencies, which are controlled by the National Telecommunications and Information Administration, the tech arm of the administration.

The FCC has already pitched a proposal to allow TV broadcasters to give up part of their large airwaves holdings in exchange for proceeds from future auctions — an unpopular idea with broadcasters who already gave up large amounts of spectrum for the previous auction, in 2008.

The National Association of Broadcasters took a more conciliatory tone Monday, pledging to “work constructively with policymakers” to achieve the goal.

“We appreciate FCC assurances that further reclamation of broadcast television spectrum will be completely voluntary, and we’re convinced that America can have both the finest broadband and broadcasting system in the world,” said NAB executive vice president Dennis Wharton.

Wharton added that Congress’s first priority should be to pass the spectrum inventory act to direct all government agencies to identify unused airwaves and ensure companies aren’t stockpiling airwaves for themselves.

But the inventory bill has been stalled in the Senate because of Sen. Tom Coburn’s (R-Okla.) concerns that it would be too pricey.

Obama’s memorandum ends that logjam by directing NTIA to hold up its end of the bargain by working with the FCC to free up airwaves. Administration officials said Monday they support the spectrum inventory legislation, but it is not necessary to move closer to auction.

Besides needing the additional spectrum to expand broadband to unserved regions and to keep up with other countries, the administration framed Monday’s announcement as a crucial element of economic recovery and job creation.

“Few technological developments hold as much potential to enhance America’s economic competitiveness, create jobs, and improve the quality of our lives as wireless high-speed access to the Internet,” the memorandum read. “Innovative new mobile technologies hold the promise for a virtuous cycle — millions of consumers gain faster access to more services at less cost, spurring innovation, and then a new round of consumer benefit from new services.”

An auction of 500 megahertz would likely raise upwards of $20 billion for the U.S. Treasury. The 2008 federal spectrum auction, which was dominated by buyers Verizon Wireless and AT&T, raised more than $19 billion.

Steve Largent, president of wireless trade group CTIA, praised the memorandum as a win-win for both the industry and the government.

“By making spectrum available for auction, the Administration will enable the wireless industry to invest billions of dollars to purchase the licensed spectrum, and billions more to build and upgrade the networks that fuel our ‘virtuous cycle’ of innovation,” he said.